Archive for January, 2014

The consensus opinion by most market strategists coming into the year was that our equity markets would follow up the 25-30% gains of 2013 with another 8-10% gain this year.

The markets will have to experience a hellacious rally in the next two trading days or make an exception to an age old rule that January’s price action sets the direction for the year as a whole.

So what is going on with the markets? Are they simply experiencing a long overdue pullback? No doubt about that. Aside from a mild pullback last August and September of approximately 3-4%, the S&P 500 Index went straight up for the next 3 months to the tune of 12% to end the year with a 30% gain.

The 4% loss year to date certainly qualifies as a pullback but comes nowhere close to qualifying as a correction which market technicians define as a 10% decline. The S&P 500 would have to retrace another 110 points on top of the ~75 points it has lost year to date to meet that definition. (more…)

Recently Deutsche Bank surprised the markets by pre-releasing its earnings with a surprise loss of 1.5 billion Euros.

Do you think that the bank may have been previously mismarking positions or, in layman’s terms, ‘cooking the books’ and is just now playing catch up given that the stock price of the bank has rebounded? Does that sound like a practice that some might define as ‘pump and dump’? You think?

What happened to the individual who brought attention and exposure to Deutsche Bank’s financial chicanery? Let’s meet another whistleblower who received a pink slip, in this case Eric Ben-Artzi, who spoke recently at Auburn University. (more…)

Do you plan on watching President Obama’s State of the Union address this evening?

Why do I think I hear many people who might read this blog say, “Why would I want to do that?”

In the midst of leaving an event last evening in New York City, a very informed pollster told me that the overwhelming sense in the nation today is that people are totally fed up with Washington and Wall Street. No surprise there, but why is that? Well, because all too often our politicians from both sides of the aisle over-promise and then under-deliver.

As an example of just that practice, I commend Dennis Kelleher, President of Better Markets, for releasing the following statement regarding the Obama administration’s promise he made two years ago in his State of the Union to bring real accountability to Wall Street. (more…)

I wish I had the silver bullet to address and fix the rampant abusive practices that have transpired within the mortgage servicing entities of many of our large banks and elsewhere.

I don’t.

That said, the ongoing problematic issues within mortgage servicing practices remain prevalent. How do I know? I hear from people entangled in this mess on an ongoing basis.

In my opinion, these issues go right to the core of what I believe is the problem with the structure of our banking industry in America today. That problem centers on the fact that we have a few banks (e.g., JP Morgan Chase, Bank of America, Wells Fargo) that dominate the market, especially within the mortgage realm.

As many longtime readers of my blog are aware, this economic structure known as an oligopoly allows, if not promotes, the following abusive type practices: (more…)

A graphical or numerical indicator designed to show how a group feels about the market, business environment or other factor. Sentiment indicators can be used by investors to see how optimistic or pessimistic people are to current market conditions. (more…)

I thank those who have not only read my book but taken the time to leave their thoughts on the book’s page at Amazon. I welcome sharing some selected comments in the hope that they might stimulate others to want to pick up the book.

Author Larry Doyle has written a book that you simply cannot put down. It is a page-turner and each page is a thriller that takes you on an adventure like you’ve never been on. Larry was unafraid to step up to the plate and tell America all of the ugly details behind the conspiracy and the collusion among Wall Street bigwigs, insiders, and so-called admired top brass as well as the politicians, and the regulators.

Buy two copies, one for yourself and one for your Congressman.

This amazing book is becoming the needed bridge between the ‘regular, small’ guy and the honest part of Wall Street.

This is a great read and goes into great detail that anyone, even someone who is not familiar with financial markets, can understand. In Bed with Wall Street should be required reading for every high school student in this country. (more…)

I have remarked to many people that with the publishing of In Bed with Wall Street, I am taking the pursuit of issues I have written extensively about at this blog to an entirely new level. To that end, the airing by CSPAN2 BookTV of my recent talk in Washington DC is enormously beneficial in doing just that.

My remarks provide a context on my background, my experience on Wall Street, my motivation for writing the book, the paths that I have travailed in the process, and ultimately specific reforms I would propose. The clip runs 39 minutes. I am pleased with how it is presented and am obviously interested in knowing what others might think as well. Click on the image below to launch the video page at C-SPAN.

I thank the law firm of Cuneo, Gilbert & LaDuca for hosting the reception at which my remarks were captured.

For those watching the NFL playoffs, please set your DVRs at 7pm on C-SPAN2 for this 40 minute broadcast. I provide some personal background, my motivations for writing the book, some of the paths I went down that are detailed in the book, and take some questions from the audience. I want to thank my publicists — and especially Sarah Hausman — at Meryl Moss Media for making this event happen.

For those who cannot watch or tape it this evening, it will be available for online viewing on the BookTV web site once the show has aired.

What is the greatest risk within the global financial system currently?

That is a question that could likely be answered with as many opinions as there are global financial sectors. Yet that was a question posed at a recent lunch I attended.

An individual who is highly respected within the industry and who has his pulse on much of what transpires within global finance opined that he believed the risks within the shadow banking sector in China would be the linchpin for our next market meltdown. I found that to be a fascinating insight as I thought about how much or perhaps how little people truly know about this space.

Instead of wasting three hours watching The Wolf of Wall Street, I have a much better video for you to view — and in less than half the time. Much better.

If you really want to know what our financial regulators were doing while the destructive behaviors on Wall Street brought down our markets and our nation’s economy, find 80 minutes to watch remarks delivered recently by former SEC attorney and noted whistleblower Gary Aguirre at the University of Notre Dame. Aguirre’s remarks put a whole new spin on the moniker, Fightin’ Irish. Major props to those at ND for giving Aguirre the forum to speak and spread the truth. Other colleges and universities should be so courageous.

Gary Aguirre is a true American hero. If you cannot watch this video today, come back to it over the weekend. After you watch the clip, I guarantee you will want to share it with your friends and colleagues so they can understand how cronyism and corruption within the financial regulatory system has eroded the sense of trust and confidence that currently permeates our nation. You really need to watch this.